Pro-rata Billing Charges

Pro-rata Billing Charges

What is pro-rata billing?

It’s the charge applicable for a service that you used for a part of the month. It’s applicable for Monthly Recurring Charges (MRC) that are activated during the month.

Pro-rata billing is charged when:

A new service is activated.
There is a service change that takes place (upgrade or downgrade).
You add a feature to an existing service.

How is this calculated?

Example:
A Service is activated on 8 October. The invoice will reflect pro-rata charges (8 Oct – 1 Nov).

The charge is calculated as follows:

The Monthly Subscription Charge is divided by the Number of Days in the Month (30 or 31) multiplied by the Number of Days Active.

R877.00 (Subscription Charge) / 31 days (in the month) * 24 days (days active) = R 678.97.
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